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Celebrate a hundred years of Die Burger’s
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  1. 1. Die Burger » Page 40 & 41. Celebrate a hundred years of Die Burger’s reporting in an infographic that acts like a time machine of the past century. Oceans Economy » Page 18 – 31. What could this mean for the economy of the region once the potential of our sea and coastline is unlocked? Cartoon » Page 67. Die Burger’s well-known cartoonist Fred Mouton’s special edition cartoon crafted exclusively for Infocom readers. www.nmbbusinesschamber.co.za QUARTER THREE 2015 JOIN THE BAY'S BUSINESS CONVERSATION
  2. 2. 90828ADMAKERS.COM MEET THE NEW GERMANS OpelSA or www.opel.co.za The OPEL RANGE
  3. 3. C O N T E N T S Nelson Mandela Bay Business Chamber 200 Norvic Drive, KPMG House, Greenacres, 6045 • 041 373 1122 • www.nmbbusinesschamber.co.za • Registration Number: 94/08719/08 Bridgestone SA 041-404-9111 www.bridgestone.co.za City Services Management (PTY) Ltd 041-583-6893 www.cityserve.co.za Die Burger 041-503-6111 www.media24.com/newspapers/die-burger/ Dimension Data 041-398-5310 www.dimensiondata.com Dynamic Vision 041-367-2832 www.dynamicvision.co.za Eastern Cape Motors 041-816-5555 www.easterncapeford.co.za ETC Conference Centre 041-456-1616 www.etc.org.za ETC Training 041-456-1616 www.etc.org.za GMSA 041-403-9111 www.gmsa.com Grant Thornton 041-374-3222 www.gt.co.za IDC 041-363-1640 www.idc.co.za Isuzu Trucks 011-563-4000 www.isuzutrucks.co.za JGS 041-396-9200 www.jgs.co.za KPMG 041-395-1500 www.kpmg.co.za Netwide Internet 086-112-0120 www.netwide.co.za Newsclip 087-285-1614 www.newsclip.co.za NMMU Business School 041-504-4000 www.leadersfortomorrow.co.za Old Mutual PFA 041-390-7700 www.oldmutual.co.za PE College 041-585-7771 www.pecollege.co.za Purevoice 086-999-0911 www.puregroupsa.co.za PWC 041-391-4400 www.pwc.com/za The Boardwalk 041-507-7777 www.suninternational.com The Hope Factory 041-484-7400 www.thehopefactory.co.za The Plantation 041-366-1591 www.theplantation.co.za Valmac 041-484-2728 www.valmacofficenational.co.za Varsity College 041-363-4223 www.varsitycollege.co.za Volkswagen Group SA 041-994-4711 www.vw.co.za Workstation 041-586-0258  www.workstation.co.za ADVERTISERS LIST YOUR CHAMBER CEO’s letter 3 Chamber reaches record amount of Certificates of Origin issued 13 5 Questions to Nelson Mandela Bay Business Chamber Executive Secretary, Nicki Smith 14 Thank you to our Category Members 79 Welcome to our New Members 80 The Business Conversation: Unlocking the wealth in our oceans 21 Vox Pop: Your views on the development of the PE Harbour 26 Eastern Cape Maritime Summit promotes opportunity in the Blue economy 29 Algoa Bay Yacht Club - A place of leisure, friendship and sailing 30 OCEANS ECONOMY Electricity Update: Almost R300-million saved for residents and businesses in the city 35 Environmentalistswhograbbedanopportunityandkeptitsimple 36 Second Coega Power Plant to improve South Africa’s Energy Security 38 GREENING THE BAY Notes from the top by Mpumi Dweba-Kwetana 7 Wish you were here – Creating a sense of pride 62 Events Feedback - Highlights of the third quarter 75 Task Teams remain on the pulse of the Bay’s business concerns 76 REGULARS EDITOR Cindy Preller media@nmbbusinesschamber.co.za COMMUNICATIONS OFFICER Sandiswa Hewana communication@nmbbusinesschamber.co.za COMMUNICATIONS INTERN Gary Blom intern@nmbbusinesschamber.co.za ADVERTISING AND SALES Pam Cartwright publications@nmbbusinesschamber.co.za PRINTING Cadar Printers PE DESIGNER Strategy Advertising Cover Story: Oceans Economy » Page 18 – 31. Cover photo: Tasmia Ismail » EP Media General Manager of Die Burger Continues on page 67.
  4. 4. 75YEARS OF INDUSTRIAL DEVELOPMENT For 75 years, the IDC has been committed to leading industrial development in South Africa. It is this commitment that has enabled us to grow key industries and facilitate job creation, ensuring a positive contribution to the growth of our economy. If you’re an entrepreneur and have a business plan that is relevant to an industry that the IDC supports and require funding of R1 million or more, take the lead and make history. Call the Port Elizabeth office on 041 363 1640, the East London office on 043 721 0733 or visit idc.co.za to learn more about the funding criteria for the sectors that the IDC supports. SINCE 1940 OF INDUSTRIAL DEVELOPMENT /10001032SM
  5. 5. I T HAS BEEN a busy third quarter in the region of Nelson Mandela Bay and in particular, at the Nelson Mandela Bay Business Chamber. As a business community we have had many wins over the past quarter. The biggest of these was the National Energy Regulator (Nersa)’s rejection of Eskom's application to raise the price of electricity in the country. As a result, electricity customers in Nelson Mandela Bay will this year collectively save R296 336 000. The approximate electricity saving per category of business amounts to: • Large business saving R3.3-million per year; • Medium business saving R157 000 per year; • Small Business saving R15 720 per year; and • A household saving of R2 358 per year. I believe these figures speak to the true value the Nelson Mandela Bay Business Chamber gives to our members and the broader business community. I trust that this will attract greater membership for the Business Chamber due to our influential and leading role on a national level in the electricity pricing space. We also welcomed the announcement by Thomas Schaefer, Managing Director of Volkswagen Group South Africa, regarding the substantial investment of R4.5 billion over the next two years into the Uitenhage plant. This type of confidence shown in our region, yet again, is another positive indicator of our position as a platform into the African markets and bodes extremely well for local suppliers and particularly the component manufacturers in VWSA’s supply chain. We welcome the local spend in our regional economy and look forward to seeing the potential job creation as the investment unfolds. Other wins for the region was the welcoming of Spallian Africa to our shores. I enjoyed the privilege of hosting his Royal Highness Prince Wenceslas de Nassau of Luxembourg, representing the international data consulting company Spallian, and the CEO of Spallian South Africa Belinda Brass, in Nelson Mandela Bay and showing them the investment possibilities the city has to offer (see article on page 6). Another company who has joined forces with the Nelson Mandela Bay Business Chamber is Isuzu Truck South Africa, who has come on board as a Silver partner. We also welcomed Sage VIP Payroll & HR on board as a Blue Partner. Our International Desk recently received funding from our valuable partners, the Eastern Cape Development Corporation (ECDC) to the tune of R250 000 and First National Bank amounting to R100 000. These funds go a long way in assisting us host inward international investor missions and member export readiness. And last but not least, the Nelson Mandela Bay Business Chamber was honoured with a Diamond Arrow Award in the PMR.africa Eastern Cape Provincial Survey as “an institution doing the most to develop and enhance the production and manufacturing of local goods and products”. This is proudly our third year in succession of receiving a Diamond Arrow Award. All these wins for the Nelson Mandela Bay Business Chamber, have been marred by the violent protest action in Walmer on August 13. A survey by the Business Chamber tallied the losses suffered by Walmer businesses during the protest to at least R2.5-million (see article on page 11). The majority of the damages were turnover losses and these calculations did not include damage to vehicles, including a horse and trailer which was burnt out and could easily push the amount close to the R5-million mark. As a business community we strongly condemn the anarchy and criminal element associated with the service delivery protest. I have engaged with the relevant police and local government authorities, to ensure that the situation is not allowed to boil over again. The municipality should deliver expediently to the community’s needs and police presence should be more geared for these types of events to protect private property, businesses and the residents of the city. Looking forward, the Blue Economy offers the Nelson Mandela Bay a bright future with exciting growth opportunities in the maritime and marine sectors. As a region, we can take full advantage of all the Oceans economy focus areas (as listed on page 20) to unlock its true potential. It is exciting to see progression in the region on building a strong Ocean Economy with the manganese terminal move to Coega progressing (See article on page 23). As the Nelson Mandela Bay Business Chamber we are in full support of the Nelson Mandela Metropolitan University progress in establishing a maritime department in building capacity for the future. The location of the South African International Maritime Institute (SAIMI) in the Bay is also an exciting development (See article on page 24), not only benefitting our region but also the African continent. Facing the current difficult economic times, we wish all our Business Chamber members strength and agility in business in the Fourth Quarter of this year. Kevin Hustler, CEO Nelson Mandela Bay Business Chamber C E O ' S L E T T E R 3
  6. 6. D EAR INFOCOM READER, welcome to the new-look Infocom – your favourite Nelson Mandela Bay business read had a bit of a makeover in the Third Quarter of this year and we hope that you will enjoy the new modern look and feel of the publication. L E T T E R F R O M T H E E D I T O R As the Nelson Mandela Bay Business Chamber we are particularly proud of the publication, which has its origins as a black and white newsletter of the Midland Chamber of Industry many decades ago. The publication has over the years changed along with the purpose and goals of the Business Chamber – through merging with the Port Elizabeth Chamber of Commerce to form the Port Elizabeth Regional Chamber of Commerce and Industry in 1994, and more recently changing our name to the Nelson Mandela Bay Business Chamber. Looking back at some of the previous publications (page 61), Infocom has remained the voice of business for all these years – keeping up with new investments, sharing in company’s successes as the Business Chamber’s staff and board members continue to change over the years. We welcome the creative team of Strategy Advertising and Design (page 60) on board as the new designers for Infocom, and we are excited about the new look of the publication. While on a personal level, content has always topped the aesthetics of a publication for me as an editor – looks do count. The publication has over the years become a glossy, quality publication of which the business community can be proud of. We look forward to continue on this path to bring you the best business news from the region – and would welcome any input from our members. Please send the Communications Team all your business news – we would love to share in your achievements as we continue to face the business challenges in the city together. In this edition, we celebrate 100 years of news along with Die Burger (cover page, 40 and 66). Having personally started my journalism career at the Eastern Cape edition of the paper and having worked at the Media 24 Group for 10 years, I can attest to the high level of ethical journalism practiced at the paper. Congratulations to Die Burger on achieving this milestone. Our theme for this edition is the Oceans Economy (pages 18 to 31) and we look forward to the pivotal role Nelson Mandela Bay can play in adding to the wealth of the region and country in a sustainable manner. Enjoy the read. Regards Cindy Preller, Communications Manager Nelson Mandela Bay Business Chamber L AST year was a significant milestone for the Nelson Mandela Bay Business Chamber as we celebrated 150 years of organised business in the city. As one of the most prestigious and long-lasting projects of the 150 year campaign, we decided to release a Coffee Table Book which focusses on showcasing not only business in the various suburbs and geographical areas of Nelson Mandela Bay, but also puts the city as a whole at the centre-stage of the publication. The Nelson Mandela Bay Business Chamber Coffee Table Book is available at Fogarty’s in Walmer Park. SNEAK PEEK BUSINESS LOVES… RICHMOND HILL
  7. 7. i n f o c o m QUARTER THREE 20156 ROYAL INTEREST AN INVESTMENT DESTINATION OF CHOICE A S A REGION, we continue to celebrate new investments into the city, with the interest of even royalty being piqued by the vast offerings of Nelson Mandela Bay. His Royal Highness Prince Wenceslas de Nassau of Luxembourg has visited the Nelson Mandela Bay on more than one occasion recently, to investigate the investment possibilities the city has to offer. His visit was hosted by the Nelson Mandela Bay Business Chamber CEO Kevin Hustler, who took the Prince and Spallian South Africa CEO Belinda Brass on a tour of the Port of Ngqura as well as the Coega Development Corporation (CDC) and Industrial Development Zone (IDZ). Spallian Africa also hosted a Coffee Morning at the Business Chamber with selected business representatives from the city, to introduce the company’s products and services. The company provides software solutions along with data and consulting services. If a decision is made to open an office in Nelson Mandela Bay, it would be the head office from where the African operations would be run from. During a recent visit to the Port of Ngqura were from left, Nelson Mandela Bay Business Chamber CEO Kevin Hustler, Ngqura Container Terminal Chief Operations Manager Bongani Mbotini, Prince Wenceslas de Nassau of Luxembourg and Spallian South Africa CEO Belinda Brass. Picture: Supplied. “It has been an absolute privilege and honour to host Prince Wenceslas de Nassau and see Spallian Africa’s passion for not only South Africa but the African continent as a whole. We sincerely welcome them to our shores,” Hustler said. ROYA L V I SI T
  8. 8. M Y CAREER has taught me many things, the most important of which is to always take 100% responsibility for your life and be clear of where you want to be in life, and pursue your vision. Know who you are and believe in yourself. Some people are very good with starting things, others are good at transforming and others are good at maintenance. Set targets for yourself and action those targets. Never be afraid to ask questions and always remember to remain focused. Being the first Female Port Manager of Ngqura is very exciting for me. Rajesh Dana, the Port Manager for the Port of Port Elizabeth, and I see both ports as catalysts for economic development within the Eastern Cape. My focus is to ensure that I inspire, direct and motivate the management and encourage them to be the high performing team that they are, and in turn as management we create an environment for the employees to perform at their highest levels of excellency. In my personal view the future of business in the Eastern Cape looks good, there are a lot of opportunities. With the Special Exclusive Economic Zones Act, we see a lot of opportunities coming from the Coega Industrial Development Zone (IDZ) as well as the East London IDZ. P ORT OF NGQUR A PORT MANAGER MPUMI DWEBA-KWETANA N O T E S F R O M T H E T O P Businesswomen in the Eastern Cape astound me with their courage, ability to sail against the storm and make it happen in these global economic conditions. Platforms to recognize, acknowledge and celebrate those who have demonstrated exceptional leadership skills and have distinguished themselves in their respective fields, are encouraged. Women in business should not be underestimated because of their gender, colour or religion. If I could open the eyes of businesspeople in the Eastern Cape to one thing it would be to never give up, start off small and grow big. Hard work, commitment and dedication pay off. I would ask them to adopt what I call the ‘Cathedral Mind-set’. This concept was introduced to me by my mentor, Mr Eric Mafuna. It is basically about the Sagrada Familiar Concept, where Antony Guadio, took over a project of constructing one of the largest Cathedrals in the World, in Barcelona, in Spain. He devoted his entire life to the project. MPUMI DWEBA-KWETANA Port of Ngqura Port Manager Mpumi Dweba-Kwetana works for Transnet National Ports Authority as the Port Manager for the Port of Ngqura. She was appointed in August 2012. Before her appointment as Port Manager, Dweba was employed by the National Department of Transport as acting Director: Maritime Industry Development and Economic Regulation. She holds a BA degree from the University of Transkei, a BEd degree from Unisa, and a BPhil in Maritime Studies (Honours) from the University of Stellenbosch. IN MY PERSONAL VIEW THE FUTURE OF BUSINESS IN THE EASTERN CAPE LOOKS GOOD, THERE ARE A LOT OF OPPORTUNITIES. COMPILED BY GARY BLOM 7
  9. 9. i n f o c o m QUARTER THREE 20158 HOOTERS & WEIDPLAS NEW BUSINESS IN THE BAY H OOT, HOOT, HOORAY: Hooters South Africa has recently opened in Port Elizabeth, which brings the total number of Hooters restaurants in South Africa to six. The PE restaurant under the management of local restaurateur Donovan Noyle opened to an enthusiastic public on August 15. The new 200 seater store boasts 25 high definition TVs, an outside balcony space and ample parking on site. Combined with a vibrant atmosphere and the world famous Hooters wings, Hooters South Africa is excited to play its part in the Port Elizabeth restaurant scene for many years to come. NEW PARTNERSHIP LAUNCHED: Swiss plastic component manufacturer WEIDPLAS and South African partner QPlas, a specialist plastic injection-moulding manufacturer, launched an innovative trade partnership in the high-tech QPlas facility in the Nelson Mandela Bay Logistics Park on August 19. Celebrating the launch were, from left, QPlas operations director Le Roux Harmse, WEIDPLAS vice-president Daniel Spirig, QPlas managing director Tom du Toit, QTeC Moulding operations director Natalie Johannes, WEIDPLAS South Africa general manager David Krumbock, and WEIDPLAS CEO Thomas Freiberghaus. The partnership is set to create opportunities to increase local content in South African automotive manufacturing.
  10. 10. www.nmbbusinesschamber.co.za 9 Ayanda Kgwathe has been appointed as the new hotel manager at the Boardwalk Hotel and Convention Centre. Hannes Els has been appointed as Merchant Capital’s Head of Regional Sales for the Eastern Cape. He combines a decade of retail experience with financial services skills earned as regional manager for a retail financial services company. Michael Tuohy has been appointed as General Manager of Headhunters boutique recruitment consultancy. Michael previously worked as the Sales & Marketing Director at Volpes for many years. Sipho Sandla has been appointed as General Manager of KANU/ACT Operations for Isuzu Truck South Africa. THE BOARDWALK, MERCHANT CAPITAL, HEADHUNTERS & ISUZU TRUCK SOUTH AFRICA NEW APPOINTMENTS
  11. 11. 11 T HE RECENT WALMER PROTEST action which turned violent cost surveyed Nelson Mandela Bay businesses close to R2.5-million. While not all businesses affected by the Walmer protest, which lasted two days and was at its worst on Thursday August 13, responded to a questionnaire sent out by the Nelson Mandela Bay Business Chamber, the 30 businesses responding to the survey reported a massive R2 421 600 in losses. The majority of the damages were turnover losses totaling R1 391 500, while some businesses also experienced stock losses of R 527 600. Damage to property was calculated to be at least R 502 500, with fences and several shop windows needing to be repaired. Many of these businesses were not insured for public violence and would have to foot the repair bills themselves. The reported damages did not include damages to customers’ vehicles. One respondent recalls, “Customers’ vehicles were damaged by bricks and stones thrown and an elderly gentleman was pulled out of his bakkie and attacked”. In particular, businesses reliant on daily customers visiting their stores suffered the most in terms of foot count losses during the week of August 13. No physical injuries were reported by the businesses surveyed, however they reported staff and customers being traumatized and left frightened after the ordeal. Other respondents were frustrated and angry: “I will not be held accountable for my actions if this happens again. I hope that the police take this threat seriously,” was one poignant comment from the survey. Most of the surveyed businesses reported intimidation of staff and customers with one shop owner threatened in his vehicle outside his store and another who had to flee when protestors ransacked her shop, as she was trying to lock it up in the presence of police officers. Since the Walmer protest action, the Nelson Mandela Bay Business Chamber CEO Kevin Hustler has engaged with the relevant police and municipal authorities to ensure this type of event is averted at all costs. “The type of anarchy and criminal element witnesses in the name of a service delivery protest must be condemned in the strongest possible terms. The full might of the law must be used to stem this type of lawlessness as it wreaks havoc amongst law-abiding citizens going about their daily routine. It also has a huge immediate negative impact on businesses, its ability to sustain itself in an already tough economic environment and its staff having to face unrelenting intimidation and threats against their right to work.” “The major knock-on effect is the negative impact on the confidence levels of both domestic and foreign investors whom we so desperately need to turn around the socio-economic environment of our country,” Hustler said. VIOLENCE IN WALMER CLOSE TO R2.5-MILLION IN DAMAGES SUFFERED COMPILED BY CINDY PRELLER FLEEING THE SCENE Protesters flee from the Walmer Police Station in Main Road Walmer on August 13 when teargas was fired to disperse the crowd. They had marched on the Police Station to demand the release of a suspect who had been arrested for public violence during a service delivery protest in Walmer Township the previous day. PHOTO: Werner Hills, Die Burger
  12. 12. OLD MUTUAL PFA, EASTERN CAPE REGION IS MADE UP OF FOUR AREAS: 1. Madiba Bay which covers the Nelson Mandela Metro and surrounding areas. Contact number of the main area office: 041 390 7700. 2. East London covers areas under Buffalo City Metro Municipality and surrounding areas and Queenstown. Contact number: 043 706 4111. 3. Mthatha Area covering Mthatha area and the greater Transkei area. Contact Number: 047 501 2000, press 1 for PFA. 4. George Area covers the Southern Cape and the Karoo areas. Contact number: 044 801 6401. The regional office is located in Port Elizabeth in Walmer Heights at King Court Mall. SUPPORT STAFF The region also has four key support functions all based at the regional office in Port Elizabeth except for Client Services which is based at Greenacres Shopping Centre: Regional Marketing, Training Suppor, Legal Services and Client Services. The Client Services contact number is 041 502 4244; otherwise contact your financial adviser for more information and assistance. INTRODUCING NCUMISA MADINDA: REGIONAL GENERAL MANAGER Ncumisa officially joined Old Mutual on 4 May 2015. Some of her previous experience includes various sales roles with a special focus on worksite development and she was the Regional Head of Distribution in her previous role in the Western Cape. She completed her undergraduate and MBA at the Nelson Mandela Metropolitan University (NMMU). Excellence is her personal motto and her favourite quote is: “We are what we repeatedly do. Excellence, then, is not an act but a habit.” by Aristotle. OLD MUTUAL PERSONAL FINANCIAL ADVICE SERVICES: Financial Planning & Advice | Education Planning | Savings & Investments | Life Insurance | Short Term Insurance | Medical Gap Cover | Retirement Planning | Disability Insurance | Severe Illness Insurance | Wills, Trusts & Estates OLD MUTUAL PERSONAL FINANCIAL ADVICE EASTERN CAPE REGION Old Mutual is a Licensed Financial Services Provider INTRODUCING
  13. 13. SAKHIWO MADONDILE’S JOURNEY CHAMBER REACHES RECORD AMOUNT OF CERTIFICATES OF ORIGIN ISSUED C ERTIFICATES OF ORIGIN and Admin Clerk Sakhiwo Madondile - best known around the Nelson Mandela Bay Chamber offices as Sakhi - has been working at the Business Chamber for five years. Starting off as a general office assistant once he had finished matric, Sakhi went on to study a few Short Learning Programmes through Varsity College Port Elizabeth. After successful completion he was later promoted to Office Administrator at the Chamber. The position for a Certificates of Origin (COO) and Admin Clerk became available, which saw Sakhi completing some courses on Certificates of Origin. After completion of his studies, he was promoted yet again, this time to his current position which he has held for the past four years as the COO and Admin Clerk at the Chamber. “A Certificate of Origin is a document which states the origin of goods being exported and this ‘origin’ is a key requirement for applying the tariffs as well as other important criteria. COMPILED BY GARY BLOM “It was a great achievement. COO and the export industry have been growing from strength to strength, especially with the Perishables, Wool & Mohair as well as Hides & Sheepskins trade, which saw the month of June boom with the number of goods being exported,” said Sakhi. Financial requirements may be requested by the issuing bank in terms of a documentary letter of credit. “EU funded overseas projects also require certificates - these are sponsored projects which may stipulate that goods must be bought from an EU member state. Certificates are also required when the buyer may have a preference as to where the actual goods are bought from, this is normally stipulated within the contract,” Sakhi said. Businesses benefit from Nelson Mandela Bay Business Chamber COO services if they export their products overseas, going through the efficient and friendly Sakhi at the Business Chamber. The export industry and COO have recently seen a record number of certificates being issued in the month of June. NELSON MANDELA BAY BUSINESS CHAMBER ASSISTS EXPORT COMPANIES WITH THEIR CERTIFICATES OF ORIGIN Certificates of Origin and Admin Clerk Sakhiwo Madondile reached a new record at the Chamber in June, with 1 977 certificates issued. Certificates of Origin services are offered at the Nelson Mandela Bay Business Chamber. This service is offered to both our members and external Certificates of Origin clients. In 2013 we produced over 12 000 and in 2014 we produced 13 806 Certificates of Origin, which had shown incredible growth year-on-year. During the first seven months of this year, we have already issued close to 8 480 certificates. The most certificates issued to date in one month was achieved in June this year, with the record of 1 977 certificates. 13
  14. 14. i n f o c o m QUARTER THREE 201514 YOUR CHAMBER 5 QUESTIONS TO BUSINESS CHAMBER EXECUTIVE SECRETARY NICKI SMITH N ICKI has given quality service to the Nelson Mandela Bay business community through her work at the Business Chamber for the past 26 years. 1. How did your journey start at the Chamber? Without revealing my age, my journey started in 1989 at the Midlands Chamber of Industry, which was established in 1927. Our offices were based in Grahamstown Road where I was the secretary to one of the Group Secretaries. 2. If you weren’t an Executive Secretary and right-hand to many, what would you be? I would be travelling the world with my family. 3. What is your most memorable moment at the Chamber? I am not sure exactly what year, but my most memorable moment was when Former President Nelson Mandela visited the Midlands Chamber of Industry. There was an electric atmosphere the moment he entered the room. I recall the kitchen staff and the entire team coming out to sing to him - he was so personable and friendly. There were quite a few other moments but another one which stands out was when the Coega Industrial Development Zone was launched under Kevin Wakefield’s leadership as CEO. It wasn’t a huge milestone then, but seeing the positive growth and positive impact that the IDZ has had on the region, I am proud to have been around to witness it. 4. Over the years, what has been your favourite changes made at the Chamber? It is difficult to say, but probably moving into a modern building. 5. What is your message to women in business? Keep learning, keep observing! Look upwards and onwards. QUALITY SERVICE: Chamber Executive Secretary Nicki Smith still smiling after 26 years of service. Sandiswa Hewana sat down with one of the Nelson Mandela Bay Business Chamber’s longest-serving staff members, Nicki Smith, who is fondly known as our Chief Executive’s right- hand and lifesaver to all at the Chamber. COMPILED BY SANDISWA HEWANA
  15. 15. www.nmbbusinesschamber.co.za 15 SERVING BUSINESS NEEDS (above): PERCCI Executive Team 1998 – 1999. Captured from top: Alfred da Costa (Former Chamber CEO), below: Wendy Jefferson (Former Operations Manager), Karen Smith (Former Financial Controller Building Administration) and Nicki Smith (Executive Secretary). DYNAMIC TEAM (above): Port Elizabeth Regional Chamber of Commerce and Industry (PERCCI) Team in 2006. A DAY ON THE GREENS (above): Nicki Smith picture during the Business Chamber Golf Day hosted by the Port Elizabeth Regional Chamber of Commerce and Industry (PERCCI) in 2000. “OUR SUCCESS IN LIFE IS DIRECTLY RELATED TO THE QUANTIT Y AND QUALIT Y OF SERVICE WE GIVE.” – Unknown Here is a look at Nicki’s highlights from her days at the Midlands Chamber of Industries through to the Nelson Mandela Bay Business Chamber today:
  16. 16. At Volkswagen,we believethat people are atthe heart ofeverythingwe do.And asthe makerofpeople’s cars,we are passionate about South Africans. That’s why we are committed to making a sustainable difference by investing in our communities. In rural South Africa, many people have no access to transport – making healthcare, shops, community services and schools that much more difficult to get to. And with education being the foundation for the future, a child’s learning should not be hindered by their lack of mobility. Volkswagen for Good has partnered with Qhubeka and World Vision as part of the Bicycle Education Empowerment Programme (BEEP) to provide 1,100 bicycles to 20 rural schools in the Eastern Cape and KwaZulu Natal. Distance no longer needs to be a barrier to education. With each child gaining mobility, school attendance increases allowing the children to focus on their education. Every child deserves the very best chance at a better future. All it takes is one bicycle to make a big change. Of the 17 million children in South Africa, 11 million walk to school. Only 40% of South African students achieve a qualification higher than Grade 9, and half of children who enroll in Grade 1 will never pass Grade 12. 1 out of 4 girls in developing countries are not in school and 38% marry before the age of 18. Some spend 4 hours getting to school and back daily. The future is in motion. Visit vw.co.za and join facebook.com/VWSA O&MCAPETOWN84495/E Source: Bicycle Education Empowerment Programme: qhubeka.org VOLKSWAGEN
  17. 17. * Students can apply, on successful completion, for exemption, based on recognition of prior learning, for the equivalent module offered on the full qualifications/SLP, when registering for any other IIE programme. Admission requirements apply. ** Only tuition support provided. *** Students can apply on successful completion for exemption, based on recognition of prior learning, for the equivalent modules on Higher Certificate in Business Principles and Practice when registering for the Bachelor of Commerce. Admission requirements apply. For further information, please contact a consultant at your nearest campus: Sandton (011) 784 6939 / Midrand (010) 224 4300 / Pretoria (012) 348 2551 / Cape Town (021) 685 5021 Westville / Durban North (031) 573 2038 / PMB (033) 386 2376 / Port Elizabeth (041) 363 4223 P A R T - T I M E P R O G R A M M E S • Management Development Programme • New Managers’ Development Programme * • ICB Bookkeeping to Trial Balance • ICB Business Literacy • ICB Payroll and Monthly SARS Returns • ICB Computerised Bookkeeping • ICB Financial Statements • ICB Cost and Management Accounting • ICB Office Communication • ICB Business and Office Administration • ICB Marketing Management and PR • ICB Business Law and Administrative Practice • ICB Income Tax Returns • ICB Business Law and Accounting Control • Business Management * • Marketing Management * • Principles of Business Management* • Event Management • Supply Chain and Logistics Management • Project Management • Human Resource Management • Business Communication * • Introduction to Project Management * • Corporate Strategy * • Strategic Marketing * • People Management * • Operations Management * • Finance for Managers * • Introduction to Personal Computing * • Sage Pastel Accounting • Leadership for Managers* • Leadership Skills* • IIE Bachelor of Commerce Degree * • IIE Higher Certificate in Business Principles and Practice *** • ICB Certificate: Office Administration ** • ICB National Certificate: Bookkeeping ** • ICB Further Education and Training Certificate: Bookkeeping ** • ICB National Diploma: Technical Financial Accounting ** • UNISA BCompt & BCom Finance (selected modules) ** • IMM GSM Diploma in Marketing Management (selected campuses) ** • IMM GSM Bachelor of Business Administration (selected campuses) ** S H O R T L E A R N I N G P R O G R A M M E S THE INSTITUTE O F CERTIFIE D BOOKKEEP ERS www.thebusinessschool.co.za FOR A NEW GENERATION OF BUSINESS LEADERS. Want to set your ambition on the right path? If you believe that the future belongs to those bold enough to change the world around them, we’re with you. In fact, we’ve been quietly changing our own world, creating a business school for a new generation. Listed below are the upcoming programmes available at The Business School: Us too. L E T ’ S T A L K Varsity College is an educational brand of The Independent Institute of Education (Pty) Ltd which is registered with the Department of Higher Education and Training as a private higher education institution under the Higher Education Act, 1997(reg. no. 2007/HE07/002). Company registration number: 1987/004754/07.
  18. 18. OCEANS ECONOMY UNLOCKING THE WEALTH ALONG OUR COASTLINE AND IN OUR SEAS More than 80% of South Africa’s trade moves by sea and we are ranked in the top 12 global maritime trading nations. However, the oceans economy remains an unexplored playing field – with studies showing it has the potential to transform the country. The Eastern Cape is one of the few areas along the South African coastline considered suitable for marine-based aquaculture. LEAD STORY Photocredit:Supplied
  19. 19. i n f o c o m QUARTER THREE 201520 The maritime economy is diverse, and its specialist areas overlap into many other areas of the economy, including: » shipping and transport (e.g. logistics & linkages with other transport modes, cargo movement, infrastructure, navigation, port administration, shore-based & off-shore operations); » marine resources (e.g. environmental management, catching & processing); aquaculture (fish farming: shore- or sea- based), pharmaceuticals, renewable energy, mining, oil and gas exploration); » tourism and leisure (e.g. cruises, hospitality, sports, recreation, eco-tourism, property); » manufacturing and engineering (ship/boat building, repair, maintenance, equipment manufacturing); » business services (e.g. banking, legal, insurance); » support services (customs, freight forwarding, vessel and crew management, technology); and » regulatory/public interest (e.g. safety, environmental), security (people and property), policing (i.e. poaching, illegal fishing), customs, defense, legislation and policy development, international law. (Sources: SAIMI and the Presidency) O PERATION PHAKISA plays a critical role in fast-tracking delivery on some of the priorities encompassed in the National Development Plan. The first implementation of Operation Phakisa focusses on unlocking the economic potential of South Africa’s oceans. With the inclusion of Prince Edward and Marion Islands in the southern ocean, the South African coastline is approximately 3 924 km long. A premise of Operation Phakisa is that this vast ocean space is relatively unexplored in terms of its economic potential. In 2010, the ocean contributed about R54 billion to South Africa’s gross domestic product (GDP) and accounted for approximately 316 000 jobs. It is believed that the oceans economy has the potential to grow the GDP contribution to R177 billion, creating one million direct jobs by 2030. Provincially, an Integrated Oceans Economy Strategy is being developed for the Eastern Cape. The oceans economy has been identified within the Top 5 priorities of the Board of Eastern Cape Socio-Economic Consultative Council (Ecsecc) to drive the Blue Economy strategy together with provincial government over the next three to five years. Photocredit:Supplied INTRODUCING THE BLUE ECONOMY WHY ALL THE FUSS ABOUT THE SEA? WHAT IS THE MARITIME ECONOMY?
  20. 20. www.nmbbusinesschamber.co.za 21 W ITH THE POTENTIAL to unlock the wealth of the Eastern Cape and diversify the economy of Nelson Mandela Bay, the oceans economy is starting with a small ripple in the business world – but has the potential to create multiplying waves of change for the city, the province and the nation. Since the announcement by national government last year to prioritise this sector of the country’s economy under Operation Phakisa, many have started their research to capitalise on the oceans economy – in particular the business community. From entrepreneurs starting out as boat builders to established multinationals specializing in offshore oil and gas exploration, the maritime sector has a wealth of undiscovered potential for job and prosperity creation – on condition that it is practiced in a sustainable manner. As the Nelson Mandela Bay Business Chamber we remain committed to the development of an aquaculture facility in the Bay, however, the location should be considered with great care. This facility must be appropriately located not to impact on other key economic activity and tourism. Recently we welcomed Environmental Affairs Minister Edwa Molewa’s announcement to set aside a decision to grant environmental authorization for the development of a proposed fish farm off Hobie Beach. Like many other stakeholders in Nelson Mandela Bay, the Business Chamber took a strong stance against the fish farm, based on its location and the effect it could have particularly on the beachfront tourism industry. The proposed fish farm’s location in Algoa Bay should be studied holistically, in terms of the risk to both the economy and the environment. The economic value of our beachfront should not be undermined – any risk to this pillar of our local economy must be averted at all cost. As one of the poorest provinces in South Africa, business should – however - capitalise on the opportunities offered to them under the umbrella of the oceans economy, as long as it is done in a sustainable manner. Our coastline is an untapped resource sitting there, waiting for us to realise its enormous economic potential. However, to support the marine sector within the Eastern Cape, we are going to have to continue developing the areas of capacity building and co-ordination. The South African International Maritime Institute (SAIMI) has made great strides in achieving greater vocational capacity building, while the pursuit of strategic partnerships with China, Finland, Norway and Sweden – amongst others - is equipping academia, government and business with international best practice in unlocking the oceans economy. As business, we have a critical role to play in bringing the private sector on board. Even with the benefit of all the policies and good governance in the world, the private sector is still called upon to drive the economy within the framework of Operation Phakisa. Our efforts must be co-ordinated to ensure the realisation of the true potential of the Blue Economy, its sustainability and responsiveness to good environmental and ocean governance. THE BUSINESS CONVERSATION WITH KEVIN HUSTLER UNLOCKING THE WEALTH IN OUR OCEANS
  21. 21. i n f o c o m QUARTER FOUR 201522 If the “little things” really matter to you, you need to drive DriveGuard tyres. Bridgestone’s DriveGuard tyres are Run Flat tyres created for ordinary cars, specially designed to keep you on the road even after a sudden loss of air pressure. DriveGuard’s unique Run Flat Technology ensures that you can travel up to 80km/h for 80km on a flat tyre. DriveGuard tyres are available in sizes 15 inch & larger for a range of popular vehicles. So, if you’re driven, drive DriveGuard. Available at: Bridgestone’s DriveGuard tyres are Run Flat tyres created for ordinary sudden loss of air pressure. DriveGuard’s unique Run Flat Technology bridgestone.co.za DWFCOLL518612
  22. 22. 23www.nmbbusinesschamber.co.za EDITORIAL MANGANESE EXPORTS COULD TREBLE AFTER RELOCATION COMPILED BY CINDY PRELLER “Looking beyond that, there will definitely be a growth in job creation and increased opportunities in the road, rail and maritime logistic sectors,” Hustler said. W E ARE ONE STEP CLOSER to removing one of the big eyesores at the city’s beachfront, which has plagued residents and businesses in Nelson Mandela Bay for many years. Transnet Port Terminals was recently issued with a permanent operating license for operating a manganese terminal at the Port of Ngqura. The existing manganese at the Port of Port Elizabeth will be relocated to a new facility at the Coega Industrial Development Zone. EYE SOR E The manganese terminal at the Port of Port Elizabeth is being relocated to a new facility at the Coega Industrial Development Zone, to become operational in the first quarter of 2019. Picture: SUPPLIED The Nelson Mandela Bay Business Chamber has been lobbying extensively over the past six years with the Transnet group and all the relevant government departments for the relocation of the manganese terminal, said Business Chamber CEO Kevin Hustler. Hustler said this had not been an easy road for business and the citizens of Nelson Mandela Bay, as many had been disappointed along the way with regards to the shifting timelines of this megaproject. “The relocation of the manganese and liquid bulk terminals has been a priority for the Nelson Mandela Bay Business Chamber for a number of years and we are pleased to see that we are nearing the final goal post of achieving the mammoth relocation of the manganese terminal from the Port of Port Elizabeth,” Hustler said. The first phase of the rail upgrades and harbour development is valued at R2.3-billion and the manganese facility is expected to treble our exports from 6 million to 16 million tons of manganese, Hustler said. He said the Nelson Mandela Bay Business Chamber was looking forward to the manganese terminal at Coega becoming operational in the first quarter of 2019. “Along with such a mammoth investment in the new manganese facility, port and rail infrastructure comes many opportunities for Nelson Mandela Bay businesses to participate in projects relating to civil engineering, construction, engineering works and services companies during the upgrade and implementation phases.”
  23. 23. THE MARITIME ECONOMY AND RESPONDING TO ITS SKILLS NEEDS T HE SOUTH AFRICAN INTERNATIONAL MARITIME INSTITUTE (SAIMI) was launched late last year to accelerate the skills development needed for South Africa to take economic advantage of its 3 000 km coastline and 1.5-million km2 territorial waters. SAIMI was established in response to demand from the maritime sector for greater coordination and responsiveness of skills development, training, education and research in order to support the national priority of growing the maritime economy. SAIMI is a national institute, working with education and training institutions, government, and business across the diverse sub-sectors of the maritime economy. The intention is to identify skills gaps, training needs and programmes to be developed, and support education and training institutions in responding to the needs of the maritime industry. The institute is also intended to act as a catalyst for maritime research, innovation and knowledge generation, and play an advocacy role to support the growth of the maritime sector. SAIMI’s head office in Nelson Mandela Bay is hosted by Nelson Mandela Metropolitan University (NMMU) and the institute will work nationally through a network of regional centres in the Western Cape, KwaZulu-Natal and Gauteng, engaging with a broad range of stakeholders in education, business and government. As a multi-stakeholder, multi-disciplinary institute, SAIMI is led by a representative steering committee with members from the South African Maritime Safety Authority (SAMSA), the Department of Higher Education & Training (DHET), the Transport Education and Training Authority (TETA), the Department of Science & Technology (DST), the Department of Trade and Industry (dti), and Transnet. The maritime industry is represented by the Maritime Industry Association of South Africa (MIASA) and the SA Oil & Gas Alliance (SAOGA), and the committee is intent on broadening industry representation. The Steering Committee is chaired by Nelson Mandela Metropolitan University (NMMU) as the host institution of SAIMI. SAMSA and NMMU concluded a memorandum of agreement in early 2014 to collaborate on the formation of SAIMI, and appointed a project team to drive the process. SAIMI has offices at the NMMU Bird Street Campus in Central, Port Elizabeth, the steering committee has been established, some project work is underway, and the recruitment process for appointment of a CEO commenced in July this year. The South African International Maritime Institute was established to support the national priority of growing the maritime economy. Picture: SUPPLIED SKILLS DEVELOPMENT
  24. 24. www.leadersfortomorrow.co.za +27 (0)861 504 500 | business.school@nmmu.ac.za | www.leadersfortomorrow.co.za Contact us today FORMAL ACADEMIC DEGREE PROGRAMMES: ` Doctorate in Business Administration (DBA) ` Masters in Business Administration (MBA) ` Postgraduate Diploma in Business Administration (PDBA) EXECUTIVE EDUCATION: ` Management Development Programme (MDP) ` Emerging Leaders Programme (ELP) ` Advanced Leadership Programme (ALP) ` Business Management Programme (BMP) ` Intermediate Leadership Programme (ILP) ` Foundation Leadership Programme (FLP) ` Short Learning Programmes (SLP) ` SETA Accredited Modules ` Specialist Programmes CUSTOMISED LEARNING and IN-HOUSE DELIVERY: ` Programmes designed and delivered based on needs of clients Public & Education Building Design PILOT 4 STAR RATING - BEST PRACTICE Invest in your career sustainability w i t h A f r i c a ’ s f o r w a r d - t h i n k i n g b u s i n e s s s c h o o l MAIN CAMPUS AND ADMINISTRATIVE HEAD OFFICE: Port Elizabeth • SATELLITE SUPPORT OFFICES: East London, George and Durban • VIDEOCONFERENCING POINTS: Gauteng and Cape Town NMMU Business School accreditations, rankings, memberships and awards:
  25. 25. i n f o c o m QUARTER THREE 201526 VOX POP YOUR VIEWS ON THE DEVELOPMENT OF THE PORT ELIZABETH HARBOUR N ELSON MANDELA BAY is a two-port city, offering investors a choice of two harbours - the multi-cargo Port of Port Elizabeth and the deep seawater Port of Ngqura. The Port of Port Elizabeth imports and exports a variety of automotive related products as an integral automotive hub in the region. The Port of Port Elizabeth is also known for its leisure facilities, and is regarded as a visiting port with the average stay of vessels being 13 hours. Vessels arrive in the morning and passengers embark on city and safari excursions and visit other local attractions. The cruise liner industry is seasonal, usually starting in October and coming to an end in April. The redevelopment of the Port of Port Elizabeth is being integrated into the future development plans of the city, in particular the CBD. The Port of Port Elizabeth’s development plans are also aligned with Project Phakisa – to become a marine engineering hub. Further developments in the Port of Port Elizabeth include plans for a leisure and recreational marina. COMPILED BY GARY BLOM AND SANDISWA HEWANA
  26. 26. 27 Sandiswa Hewana and Gary Blom spoke to businesses at the Port Elizabeth Harbour to get their views on the changes that are expected to come. Photocredit:GaryBlom MANDELA BAY DEVELOPMENT AGENCY Nelson Mandela Bay is well-developed, but over reliant on the secondary sector (i.e. motor manufacturing and related industry), and does not have a primary industry (i.e. mining) and is badly developed in the tertiary industry (which is tourism/leisure/entertainment). The Port/Baakens precinct between the port and the Bridge Street Brewery is destined to become a new tourism/leisure/entertainment precinct. The Port/ Baakens precinct planning and development process is the primary responsibility of the Mandela Bay Development Agency, whereas the Port Master Plan process is the primary responsibility of Transnet. Luvuyo Bangazi, Marketing and Communications Manager EYETHU FISHING We do both fresh and frozen wholesale, as well as the exporting of fish from our branch. We are growing at a rapid speed, and due to this we were experiencing space constraints and we therefore opened a new branch at Five Ways where we have a deli and eatery. We also had to open new cold room storage facilities in Deal Party, as there just isn’t enough space for us to grow in the harbour itself anymore. We supply a lot of local businesses with fish. We would love to see developments at the harbour, with both retail as well as industry specific projects. It is currently quite difficult for customers to come down to the harbour as there is security to get through, and there is a shortage of parking bays that are available. Rochelle Thomas, HR Manager BREAK EVEN SUPPLIERS The business has been here for 15 years and we are quite a seasonal business, with the calamari/ chokka season closing around 22 October, and opening again around 22 November. It would be nice to see more developments at the harbour, but not anything retail due to security issues. It would be hard to control and monitor a continuous crowd around the harbour, where there is access to the boats. We are already battling with theft and allowing the public to freely enter the harbour in masses could add to the current situation. Christine Murray, Sales Consultant OCEAN FRESH DELI We are kept in the dark regarding the developments around the harbour. We don’t actually get any information on what they have planned or what is happening. My business is very weather dependant - when it is cold and rainy we are empty and when we have hot summers days, I run out of tables and space for my clients. More harbour development would be nice, but it would need to be a different variety of stores. Because it is a small area, competition can become too much and we cannot all offer the same thing down at the harbour. We have our own vessels, and we also get fresh fish from local suppliers here at the harbour. We only serve fresh fish and we also supply to Johannesburg. If they develop retail space within the harbour, I hope that there is a wide variety of places for the public to choose from and not just seafood cuisine. Vivian Forlee, Owner
  27. 27. i n f o c o m QUARTER THREE 201528 I T USED TO BE that small meant basic, boring and badly finished – not much to be proud of in a boat –but Port Elizabeth builders Orca Marine are capsizing all that and putting seamless style and strength in the water with their range of hand-crafted boats. Launched late last year, Orca’s owners, brothers Myles and Justin Dent, have deliberately positioned their all- new, small sports utility boats to compete in a market they say is desperately in need of an overhaul. With global trends trimming down in favour of convenience, cost and environmental considerations – in boats, as much as in cars and houses - they say there’s no reason why small shouldn’t be big on high-end quality and class. “Traditionally, boats of this size have not enjoyed the finish and attention to detail that we apply to our designs – many boat manufacturers have not considered it important for this end of the market and buyers have had little choice but to accept what was on offer. However, there is no reason why quality should be compromised. We’ve taken advantage of this gap in the market,” said Myles. With boatbuilding one of the key sectors earmarked for growth and development by government’s drive to develop the Blue Economy, Orca Marine is positioning itself to take advantage of government support and export incentives in the future. The company has recently taken up residence in a small factory in Baakens Valley. A seasoned ex-corporate marketing executive, Myles brings astute marketing and business acumen to the venture, but it is his younger brother’s dream to build his own range of boats that has come true with Orca Marine. A composites expert, Justin has spent his life in the boating business in South Africa as well as 10 years in England, building and repairing boats of all shapes and sizes. The brothers say each vessel is a labour of love, carefully hand crafted to exacting specifications. BOATING DUO Owners of Port Elizabeth-based sports utility boat manufacturing concern Orca Marine, brothers Justin (left) and Myles Dent, are filling a gap in the entry-level boat market with high quality finishes and stylish designs. ONE OF THE PILLARS TARGETED TO BE DEVELOPED IN THE OCEANS ECONOMY IS MANUFACTURING AND ENGINEERING, WHICH INCLUDES SHIP AND BOAT BUILDING, REPAIR, MAINTENANCE AND EQUIPMENT MANUFACTURING. BOAT-BUILDING BROTHERS ANSWER THE CALL TO DEVELOP THE BAY’S OCEANS ECONOMY – O N E B O AT AT A T I M E
  28. 28. 29 T HE EASTERN CAPE MARITIME SUMMIT, taking place on Friday 13 November in Nelson Mandela Bay, is set to spur trade and investment in the region and assist entrepreneurs and investors to understand how to tap into the Blue Economy, increasingly hailed as South Africa's proverbial “golden goose”. The Eastern Cape Province with its 800 km of coastline, and three ports, is set to become South Africa's leading hub of maritime economic activity and while government's Operation Phakisa had effectively placed the maritime economy well onto the development agenda, business lacks knowledge and resources to tangibly enter the sector, says Inkanyezi Event's CEO Andrew Binning. The EC Maritime Summit, Binning said, will address, at a practical level, actual opportunities and how businesses and entrepreneurs can access them, through case-studies and other expert presentations. Plenary sessions, followed by break-away streams focussed on specific aspects such as Transport, Aquaculture and Tourism is expected to draw over 300 national delegates. The tradeshow, featuring up to 100 exhibiting organisations, would spur sales and contracts between buyers and suppliers in the sector nationally, Binning said. “We want to provide critical information and resources without the Summit becoming another talk shop - so opportunity and sales are the two key themes.”' The Summit is presented under the auspices of the Nelson Mandela Bay Maritime Cluster with the collaboration of Eastern Cape Socio-Economic Consultative Council, the Eastern Cape Development Corporation, the Nelson Mandela Bay Business Chamber, Border Kei Chamber of Business and the Eastern Cape Department of Transport, the custodian of Maritime transport in the region, among others. BLUE ECONOMY The Eastern Cape is set to become South Africa's leading hub of maritime economic activity, boasting three ports in the province. Picture: SUPPLIED FAST FACTS » 1 in 5 individuals globally rely on ocean food as sources of protein. Between 60% and 70% of the world’s fish species are exhausted. EASTERN CAPE MARITIME SUMMIT P R O M O T I N G O P P O R T U N I T Y I N T H E B L U E E C O N O M Y
  29. 29. i n f o c o m QUARTER THREE 201530 T HE ALGOA BAY YACHT CLUB (ABYC) is based in the Port of Port Elizabeth and exists to, “Foster an interest in sailing”. All the facilities to meet this objective are provided by an active sailing section, marina, youth sailing development programme, hosting of local, regional, national and international regattas, a convivial pub and excellent restaurant (The Chartroom). ABYC is internationally acknowledged as one of the friendliest sailing clubs - rather apt as we find ourselves in the Friendly City. Competitive sailing takes place every weekend throughout the sailing season and social Wednesday Evening Sailing is open to all who want to “try before you buy”. Membership is open to all who express an interest and active participation in sailing and offers many benefits. The sport of sailing is essentially one that is fuelled by volunteers who unstintingly give of their time and money in promotion thereof. Volunteer members excelled themselves this past season - which saw us hosting the 60th SAP 5O5 World Championships, the finish of the Vasco da Gama Ocean Race from Durban to Port Elizabeth, our premier annual regatta SUN & SAILING ABYC is known as one of the friendliest sailing clubs, and boasts a youth sailing development programme. ALGOA BAY YACHT CLUB A PLACE OF LEISURE, FRIENDSHIP AND SAILING BY ALAN STR ATON
  30. 30. www.nmbbusinesschamber.co.za 31 ABYC is situated within the precincts of the Port Elizabeth Harbour just north of the National Sea Rescue (NSRI) and Port Elizabeth Deep Sea Angling Club (PEDSAC). ABYC Week and numerous interclub and internal regattas. ABYC's annual interclub dinghy regatta takes place on the North End Lake in the shadow of the iconic Nelson Mandela Bay Stadium. The coming sailing season is jam-packed as we will see a number of 5O5 sailors from Europe return to train in Algoa Bay - acknowledging that Algoa Bay offers one of the best sailing areas in the world. The Vasco Da Gama will finish in Port Elizabeth with an increased fleet of ocean-going yachts, ABYC will host the prestigious IRC Nationals with approximately 30 boats travelling to compete (IRC Nationals attracts the top big boats in South Africa) at the same time as ABYC Week and we will round the season off with the Laser Nationals which will see around 60 boats competing. Our sailors compete in the highest levels and have acquitted themselves well on a national and international level. Photocredits:GaryBlom
  31. 31. i n f o c o m QUARTER THREE 201532 Photocredit:Supplied TAKING RESPONSIBILITY BY SHARING SOLUTIONS AND BEST PRACTICE Nelson Mandela Bay businesses are committed to preserving our natural resources. Whether it is finding innovative solutions for load-shedding, turning recycling into a lucrative business or addressing energy concerns in the city, the business community is leading the way to establishing a greener Bay. FEATURE STORY GREENING THE BAY
  32. 32. www.nmbbusinesschamber.co.za 33
  33. 33. i n f o c o m QUARTER THREE 201534 A T THE RECENT POWER-ON EXPO in Walmer Park Shopping Centre, companies in Nelson Mandela Bay showcased options to overcome the dreaded headache of load-shedding. The Nelson Mandela Bay Business Chamber Sustainability and Renewable Energy Task Team were in attendance and from the products and services displayed, selected these three most common options available to residents and businesses in overcoming load-shedding. Here is a look at the Pro’s and Con’s of each of these options: So what about an UPS? Unfortunately, this term has created a lot of confusion as an UPS is designed for a short burst of loss of power and not the two hours we traditionally have for load-shedding. It also consumes a lot of electricity and ultimately, like the back-up system, it is not assisting the situation of stress on the national grid but adding to it. In selecting a solution for your business or home, it is vitally important to ensure that the inverter is Pure Sine Wave. Microcare Research and Development Director Nelius De Lange explains: “Non Pure Sine Wave Inverters such as Modified Sine Wave are not designed to run a load on a daily basis but rather for emergency back up only, such as an UPS. Common load- shedding kits have built-in batteries where the inverter is reliant on the batteries depleting before the system overheats. It is best to speak with a reputable company before purchasing a system for your office or home.” With the South African market being flooded with load-shedding solutions and products, businesses and residents need to be more informed about what is available and who to speak to for a sustainable solution. GREENING EXPERT ADVICE N E L S O N M A N D E L A B AY G E T S P OW E R E D O N COMPILED BY GARETH BURLEY SOLUTION PRO’S CON’S Back-up System (with batteries & bi-directional inverter) R5 000 – R20 000 » Affordable; » Portable, so it is easy to work with; » Gives an immediate solution; » Keeps essentials on during load-shedding. » Needs the grid to charge; » Can be safety concerns due to the cabling; » Not modular so cannot add onto it. Start up Solar solution (inverter and panels with solar charger) R25 000 – R65 000 » Clean energy from the sun; » Gets you started towards securing your own energy future; » Have all the benefits of an inverter but is modular so you can add on. » Still dependant on the grid; » Price starts becoming a factor. Full Solar Installation R65 000 – R200 000+ » Can generate all your electricity required; » Free from load-shedding; » Able to manage our energy use; » Can calculate Return on Investment. » Expensive and needs to be seen as an investment; » System size is limited to roof space and direction.
  34. 34. www.nmbbusinesschamber.co.za 35 ELECTRICIT Y UPDATE A L M O S T R 3 0 0 - M I L L I O N S AV E D F O R R E S I D E N T S A N D B U S I N E S S E S I N T H E C I T Y E LECTRICITY CUSTOMERS in Nelson Mandela Bay will this year collectively save R296 336 000, thanks to an earlier decision to reject additional electricity charges. The National Energy Regulator (Nersa) rejected Eskom's application to raise the price of electricity following public hearings in June, which was attended by a delegation representing the Nelson Mandela Bay Business Chamber. In a recent presentation to the Nelson Mandela Bay Business Chamber Board, one of the delegation members, Strategic Resources task team chair Angus Clark, calculated the amount in savings for the city’s customers, based on the metro’s annual electricity sales and Eskom’s proposed initial full increase of 25.3%. COMPILED BY CINDY PRELLER Safeguarding the interest of business from uncompetitive electricity prices, we were the only business organisation of its kind to present at the August hearing. During his presentation Mertens stressed that the winter tariffs for businesses in Nelson Mandela Bay were detrimental to industry, experienced in recent times, with some businesses in the city reporting to be down on their knees – facing possible closure – due to the unaffordability of electricity tariffs during the winter months. “Your Nelson Mandela Bay Business Chamber is out there ensuring the interests of all businesses are protected - big or small - to safeguard their sustainability and international competitiveness. We sincerely acknowledge and appreciate the time, great effort and expertise poured into such engagements by our volunteer task team champions,” Hustler said. SAVING PER YEAR LARGE BUSINESSES» R3.3 MILLION R157 000 R15 720 MEDIUM BUSINESSES» SMALL BUSINESSES» “Business as a whole is appreciative of Nersa’s decision to reject Eskom’s request for additional funding and keeping Eskom’s increase to 14.24%,” Clark said. Not only will residential customers, feeling the pinch of the current economic downturn, experience some relief, but it could mean the difference between keeping the doors open for some companies in the city. Clark calculated the total household saving on average per home or family to be R2 358 per year. The Nelson Mandela Bay Business Chamber is leading the way in the country in terms of challenging uncompetitive electricity tariffs, with High Energy User Group champion David Mertens in August representing the Business Chamber’s interest at another Nersa public hearing on the Cost of Supply (COS) Framework. THE APPROXIMATE ELECTRICITY SAVING PER CATEGORY OF BUSINESS AMOUNTS TO:
  35. 35. i n f o c o m QUARTER THREE 201536 GREENING THE BAY E N V I R O N M E N TA L I S T S W H O G R A B B E D A N O P P O R T U N I T Y A N D K E P T I T S I M P L E T HE WASTE TRADE COMPANY, the Nelson Mandela Bay Business Chamber’s recycling service provider, shares the small steps that businesses can take to “go green”. Vicky du Toit, Marketing manager at The Waste Trade Company, tells the story behind ‘waste’. What inspired the start of the business? Way back in 1998, The Waste Trade Company was started as a value added service to General Motors South Africa (known as Delta at the time). Howard Bulkin, owner of The Waste Trade Company, saw an opportunity to derive worth from waste whilst creating employment and benefiting the environment. At The Waste Trade Company, we are all environmentalists at heart - the ethos filters down from executive management to all departments. What are the environmental benefits of recycling? By recycling we conserve our natural resources, as the production of new products using recycled material uses less raw material as well as energy. The worldwide waste epidemic is also being addressed by recycling as less waste is being dumped illegally or sent to landfills. Employment opportunities are yet another benefit, but job creation in the recycling industry is GOING GREEN Waste Trade Company Owner, Howard Bulkin seeing his vision come alive. directly linked to the consumer demand for recycling. By recycling, you are positively impacting the economy. What is the biggest misconception about recycling? If a product has a recycling sign on it, it can be recycled. This is not necessarily true. We have to keep in mind that our products are not always sourced and packaged locally. A product that can be recycled in another country might not be recyclable in South Africa yet. The consumer needs to research what the local recyclers are collecting. Again we stress the waste hierarchy, "reduce, reuse, recycle". What is the best recycling tip? Keep it simple. You do not need fancy bins or a lot of space to start recycling. Just start by keeping recyclables in a separate bag and further separate them at your nearest drop-off station. What can businesses start doing today to kick-start their recycling initiatives? Three ingredients are key to the success of a recycling initiative: Resources, Education and Motivation. What advice would you give to someone who wants to start a similar project? Having the right motives is very important as the waste industry can be quite challenging. A true environmentalist will see an opportunity where others might see a problem. What other greening projects do you have? We are very proud of our Schools Recycling Project. This initiative started in 2009 and has grown since then to over 250 clients. We are currently collecting just over 50 tons of recyclables a month from this project. The objective of this project is to educate children about the importance of preserving our natural resources and diverting waste from landfill. The Schools Recycling Project is not only limited to schools - we encourage churches, NPO's and retirement villages to sign up as well. COMPILED BY SANDISWA HEWANA
  36. 36. www.nmbbusinesschamber.co.za 37
  37. 37. i n f o c o m QUARTER THREE 201538 P LANS for a liquefied natural gas (LNG) power plant in Port Elizabeth will soon become a reality. Coega Development Corporation (CDC) recently announced that the project, set to be one of the most efficient Greenfield capacity expansion options for South African energy security, will now enter the next stage of development. The CDC recently issued a tender notice for an environmental impact assessment (EIA) for the combined cycle gas turbine (CCGT) power facility, said CDC energy sector manager Sandisiwe Ncemane. Ncemane said the project will support government’s Integrated Resource Plan (IRP) and a 2012 Ministerial Determination allocation of 2,652MW for energy from natural gas between 2021 and 2025. The project also slots into Operation Phakisa – government’s “Big Fast Results” programme to unlock economic growth and development through an Oceans Economy. According to Ncemane five environmental impact assessment studies supporting a gas-to-power solution have been undertaken since 2006. The latest tender notice for an EIA calls for the actual development of a gas-fired plant in the Coega IDZ, which links up to a LNG terminal and berth at the Port of Ngqura. The integrated project between the Ngqura deep seawater port and the CDC entails a special berth which makes provision for cryogenic sea vessels or LNG carriers, a processing facility that will convert LNG into gas and a 2km pipeline to the power plant that will generate electricity from natural gas. The distance from site for the gas plant is 4km from the Dedisa substation, and this will significantly reduce costs. The proposed combined cycle gas turbine (CCGT) plant will be the second power plant in the Coega IDZ after the Dedisa Peaking Power Plant, a liquid fuel open cycle gas turbine with a 342-megawatt (MW) generation capacity. Recently, Dedisa transferred power to the national grid during a test exercise and the facility is scheduled to go online later this year. “Up to this point in time, we [Coega] and various state organs undertook a lot of valuable preparatory work. The technical feasibility and financial viability of the project had been broadly established,” Ncemane said. ENERGY HUB The Dedisa Peaking Power Plant, a liquid fuel open cycle gas turbine, is located in the Coega Development Corporation (CDC) in Nelson Mandela Bay. Coega released a tender call for a second gas-to-power plant, in addition to Dedisa, for the IDZ. Picture: SUPPLIED SECOND COEGA POWER PLANT TO IMPROVE S O U T H A F R I C A’ S E N E R G Y S E C U R I T Y
  38. 38. www.nmbbusinesschamber.co.za 39 C ONSTRUCTION WORK has started on South Africa’s latest four star green building – the first of its kind in the Eastern Cape. The modern three-storey office block will be located within the Baywest City precinct in Port Elizabeth’s western suburbs, along the N2, and its construction signals the greater roll-out of development at Baywest City following the opening of the project catalyst, the R1.7-billion Baywest Mall in May. Phase One of the R6-billion Baywest City development includes 2 000 residential opportunities, office and commercial space, light industry, a private school, hospital, and a hotel. The building, which is due to open towards the end of next year, is expected to be the first green rated commercial office block for the Eastern Cape. The only other green rated projects in the province, classified as “public and education buildings” by the Green Building Council, includes Grahamstown’s National English Literature Museum (5 star) and Port Elizabeth’s NMMU Business School (4 star). Baywest City managing director Gavin Blows said the green office block was the first of many more to come for the precinct. Developers are focused on positioning the development as eco- friendly, having set aside 20% of the 320 ha Baywest City site for the protection of rare and indigenous fauna and flora. “There is immense interest in developments of this calibre,” said Blows. “Port Elizabeth has nowhere else to grow but into the western suburbs, which is why Baywest City is ideally located for the future of the city.” A FIRST FOR THE PROVINCE N E W F O U R - S TA R G R E E N O F F I C E B L O C K AT B AY W E S T C I T Y Edward Brooks, director of architects on the project, Activate, said the demand for green rated buildings had grown globally. “These sorts of developments are generally more pleasant to work in, and tend to attract higher-end tenants. Demand has grown among the high business user category,” said Brooks. “It might come with a greater capital outlay of between five and 20%, but one needs to look at the landscape of electricity scarcity and the energy savings the building will make over time.” The office block would boast a 40 kilowatt roof mounted solar photovoltaic system, a rainwater harvesting system, and highly insulated walls, roofing and flooring to maintain a moderate internal temperature in spite of fluctuating external temperatures. The solar system would provide 15% of the building’s energy requirements, said Brooks. Also, as a requirement for the green rating, basement parking would give preference to bicycles, motorcycles and energy-efficient hybrid vehicles. An indigenous landscaped garden around the building would be maintained using the harvested rainwater, said Brooks. Ann-Mari Malan from AGAMA Energy, a green building consultancy firm, said the sustainability aspects implemented in green building projects have a positive environmental and financial impact. “Given the high energy costs and water scarcity in South Africa, implementing green building practices sends out a strong message about an organisation’s commitment to sustainability whilst promoting a positive image with stakeholders, customers and employees,” she said. GOING GR EEN Development on South Africa’s latest green star rated building, a four-star green office block in Port Elizabeth, signals the roll-out of the greater Baywest City precinct development. The modern office block is the first green rated office block in the province, and the first of several for Baywest City, say developers.
  39. 39.  1919 De Lan word g  3 Se Jan Sm die Sui Afrikaa Party k bewind eerste van Su  20 September 1989 F.W. de Klerk van die Nasionale Party word verkies as staats- president van Suid-Afrika. Die Burger se verslaggewers Ebbe Dommisse en Alf Ries skryf later ’n boek, Leierstryd, oor die binnegevegte wat voor hierdie magsoorname plaasgevind het in die Suid-Afrikaanse politiek.  11 Februarie 1990 Nelson Mandela word ná 27 jaar vrygelaat uit die tronk.  1990 Dr. Ebbe Dommisse volg Wiets Beukes op as redakteur.  1 Mei 1993 Oosterlig word ingelyf by Die Burger en die naam van die publikasie word verander na Die Burger Oos-Kaap.  1948-verkiesing Dr. D.F. Malan (links) se Nasionale Party beëindig die bewind van die Verenigde Party ná “ ’n titaniese stryd deur Die Burger”.  4 Junie 1948 Dr. D.F. Malan word ingehuldig as eerste minister van Suid-Afrika.  1951 Max Theiler ontvang die Nobelprys in geneeskunde vir die ontwikkeling van ’n entstof vir geelsug, die eerste Suid-Afrikaner om ’n Nobel- toekenning te kry.  1954 Piet Cillié volg Phil Weber op as redakteur en dien 23 jaar tot 1977. Hy stig die joernalistieke departement aan die Universiteit van Stellenbosch. 100jaarsenuusopjouvoorstoep 19151914 1916 1917 1918 1919 1920 1921 1922 1923 1924 1954 1953 1952 1951 1950 1949 1948 1947 1946 1945 1955 1956 1957 1958 1959 1960 1961 1962 1963 1964 1994 1993 1992 1991 1990 1989 1988 1987 1986 1985 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004  1918 Die “Spaanse Griep” tref Suid-Afrika. Die epidemie wis talle van die koerant se personeel uit, maar dit verskyn steeds klokslag. Seker die swaarste slag wat Die Burger getref het, was die dood van C.J.L. Ruysch van Dugteren en Fred Dormehl, die eerste hoofbestuurder van die Nasionale Pers.  11 November 1918 Die Duitsers stem in tot die beëindiging van die Eerste Wêreldoorlog.  26 Julie 1915 Eerste De Burger verskyn. Die meeste van die redaksielede is skaars ’n maand vooraf aangestel. Dr. D.F. Malan is die eerste redakteur.  1915 D.C. Boonzaier is die eerste spotprent- tekenaar. Hy het veral die eerste minister, Louis Botha, geteiken.  1916 Eerste De Huisgenoot- tydskrif verskyn.  1917 Eerste vroue- joernalis, Sarah Goldblatt, kry ’n vaste aanstelling.  1917 Het Volksblad in Bloemfontein word deur Naspers oorgeneem. Dit het tweeweekliks verskyn en is die oudste bestaande Afrikaanse koerant. Die Burger is egter die oudste Afrikaanse dagblad.  18 Desember 1914 Naspers se oprigtingsvergadering word by Heemstede-huis op Stellenbosch gehou, te midde van die Rebellie. Die rebellieleier, Jopie Fourie, is daardie week in hegtenis geneem en is die Sondag tereggestel.  1957 W.E.G. Louw word Die Burger se eerste kunsredakteur en begin die kunsblad op bl. 2 van die koerant.  2 September 1958 Dr. H. F. Verwoerd van die Nasionale Party kom aan bewind as eerste minister van Suid-Afrika.  1965 Die Beeld, ’n Sondagkoerant, word gestig en gee aanleiding tot een van die felste persstryde in die Suid-Afrikaanse geskiedenis.  6 September 1966 Verwoerd word deur Dimitri Tsafendas vermoor en die droom van Groot Apartheid sterf saam met hom.  Augustus 1945 Amerika werp atoo uit die lug op die Ja stede Hirosjima e  1945 Dr. Phil Weber word aangestel as redakteur en dien tot 1954 in hierdie amp.  27 April 1994 Suid-Afrikaners stroom na die stembusse vir Suid-Afrika se eerste demokratiese verkiesing.  10 Mei 1994 Nelson Mandela (regs) word ingehuldig as die eerste president van die nuwe Suid-Afrika wat demokraties verkies is.  24 Junie 1995 Francois Pienaar lei die Springbok- span wat in die eindstryd van die Wêreldbeker- rugbytoernooi op Ellispark teen Nieu-Seeland se All Blacks met 15-12 seëvier.  14 Junie 1999 Die ANC se Thabo Mbeki word aangestel as president van Suid-Afrika.  11 September 2001 Pierre Steyn berig uit Washington oor die terroriste-aanval wat New York se World Trade Centre in puin lê en tot duisende mense se dood lei.  20 Oktober Die Springbok rugbytoernooi die eindstryd m  2006 Henry Jeffreys neem by Rossouw oor as redakteur.  2000 Arrie Rossouw word aangestel as redakteur.  4 Desember 1967 Die Burger is die eerste koerant wat berig oor die Suid-Afrikaner dr. Christiaan Barnard, wat die eerste suksesvolle hartoorplanting, op Louis Washkansky, doen.  31 Augustus 1997 Willem Pretorius berig uit Londen oor die ongeluk in Parys, Frankryk, waarin Prinses Diana dood is.
  40. 40. 9 ndbouweekblad gestig. eptember 1919 muts van id- anse kom aan d as minister uid-Afrika.  25 Januarie 1981 ’n Vloed tref Laingsburg wanneer die Buffels- rivier sy walle oorstroom. Vandag is 72 mense steeds vermis, want slegs 32 lyke is gevind.  1981 Die Burger skuif, saam met die res van Naspers, van Keeromstraat 30 na die Sanlam-gebou in Roggebaai en herdoop dit na die Naspers-sentrum.  1937 Die Oosterlig word in Port Elizabeth gestig as susterskoerant van Die Burger.  1941 T.O. Honiball volg Boonzaier op as spotprenttekenaar.  1 September 1939 Die Tweede Wêreldoorlog (regs) breek uit wanneer die Duitsers Pole binneval.  5 September 1939 Jan Smuts van die Verenigde Party kom aan bewind as eerste minister van Suid-Afrika en die stryd van die Natte teen die Sappe begin. Grafika24 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1944 1943 1942 1941 1940 1939 1938 1937 1936 1935 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1984 1983 1982 1981 1980 1979 1978 1977 1976 1975 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015  1921 Naspers druk sy eerste Engelse boek, Republicans and Sinners deur C.J. Langenhoven.  30 Junie 1924 Die Nasionale Party kom aan bewind onder J.B.M. (Barry) Hertzog.  1924 Dr. A.L.“Ysterman” Geyer volg Malan op as redakteur, toe Malan as parlementslid vir die Nasionale Party verkies word. Geyer dien vir 21 jaar in hierdie pos – naas Piet Cillié die tweede langste ampstermyn van ’n redakteur by Die Burger.  29 Oktober 1929 New York se aandelebeurs val en die Groot Depressie tref die wêreld.  3 Januarie 1922 Die Burger se eerste Afrikaanse hoofartikel verskyn. Die skrywer van hierdie artikel was dr. H.D.J. Bodenstein, die assistent-redakteur. Kort daarna word die mashoof verander na Die Burger.  1922 Die eerste boek in ’n swart taal word deur Naspers gedruk.  1922 Die skrywer Maria Elizabeth Rothmann, beter bekend as M.E.R., word aangestel as Die Burger se eerste vroueredaktrise.  1974 Die dagblad, Beeld, verskyn in die noorde van die land met Schalk Pienaar as redakteur.  9 Oktober 1978 P.W. Botha volg John Vorster op as eerste minister van Suid-Afrika.  1977 Wiets Beukes, voorheen van Volksblad, word aangestel as redakteur.  1975 Fred Mouton neem by Honiball oor en is vandag nog Die Burger se spotprenttekenaar. 5 ombomme apanese en Nagasaki.  31 Julie 2012 Die redelik onbekende jong Suid-Afrikaanse swemmer Chad le Clos verras deur die Amerikaanse swemmer Michael Phelps in die 200 m- rugslag te klop by die Olimpiese Spele in Londen. r 2007 kke wen die WB- i deur Engeland in met 15-6 te klop.  2009 Jacob Zuma van die ANC word verkies as president van Suid-Afrika.  2010 Bun Booyens word aangestel as die negende redakteur van Die Burger en staan steeds aan die stuur van hierdie koerant.  11 Maart 2011 ’n Tsoenami verwoes die noord- ooste van Japan ná ’n aardbewing van 9 op die Richterskaal ongeveer 370 km onder in die see in. Byna 16 000 mense sterf.  6 Desember 2013 Madiba sterf.  26 Julie 2015 Die Burger vier sy eeufees!  20 Julie 1969 Die Amerikaanse ruimte- tuig, Apollo 11, land op die maan en Neil Armstrong word die eerste man wat op die maan stap.  29 September 1969 ’n Aardbewing tref Tulbagh, Ceres en Wolseley. Dit meet 6,5 op die Richterskaal en 11 mense sterf.  1970 Rapport verskyn vir die eerste keer op straat, ’n samevoeging van Nasionale Pers se Die Beeld en Perskor se Dagbreek.
  41. 41. i n f o c o m QUARTER THREE 201542 YOU DON’T BUY A TRUCK, YOU JOIN A TEAM. McCannJHB911567
  42. 42. 43 ADVERTORIAL ISUZU TRUCK SOUTH AFRICA ACQUIRES 100% STAKE IN KANU AND ACT I SUZU TRUCK SOUTH AFRICA recently announced the acquisition of Port Elizabeth based KANU Commercial Body Construction (PTY) Ltd and Automotive Chassis Technologies (PTY) Ltd (ACT) in a 100% buyout of each entity, effective from August this year. The transaction will see Isuzu Trucks change from being a typical commercial Original Equipment Manufacturer (OEM) to an enterprise type of business that has the capacity to initiate and build products according to client specifications. “This acquisition complements our growth strategy. We believe the acquisition of KANU and ACT will definitely enhance our current business structure. The move to acquire these entities will centralise the process of buying our trucks where everything will be processed from one central point of contact,” says Isuzu Trucks South Africa COO, Craig Uren. The directors of Isuzu Truck South Africa, with full support of Isuzu Leadership in Japan, have developed new strategies and plans with structures in place to lead the business into this new business cycle. “Our scope of work and business is no longer only focused on what leaves the factory gate. Together with our dealers For more information, call 08600 47898 or visit www.isuzutrucks.co.za and supplier base, Isuzu Truck South Africa will have a more integrated relationship with current and future customers in the life of their trucks.” This acquisition also comes with a new appointment within the business. Current Plant Manager, Mr Sipho Sandla will move into a new role as General Manager leading the KANU/ACT operation in Port Elizabeth, with outgoing owner of KANU, Mr Tony Wright, staying on in an advisory capacity for a minimum of 12-months to ensure a smooth transition. In 1991, Sipho graduated with a Higher National Diploma in Mechanical Engineering (B.Tech). To date, Sipho has been working as an engineer in the automotive manufacturing sector for over 23 years and has vast experience in all aspects of the assembly line. “Isuzu Truck South Africa will continue to be one of the major contributors in the Eastern Cape’s Gross Domestic Product (GDP). We believe that every truck we sell into the market possesses an economic opportunity with great return on investment. The more we sell, the more economies we create, and with that, the creation of new job opportunities. South Africa and the continent at large need greater and stronger growth for our economies to develop,” said Uren. (Left) Sipho Sandla, General Manager of KANU/ACT Operations for Isuzu Truck South Africa and Craig Uren, Isuzu Truck South Africa COO. (Right) Isuzu Trucks fitted with bodies built by KANU Commercial. ISUZU TRUCK S
  43. 43. KPMG would like to congratulate CapeTownTax Partner, DeborahTickle, on her appointment to the DavisTax Committee. The Committee’s objective is to assess South Africa’s tax policy framework and its role in supporting the objectives of inclusive growth, employment, development and fiscal sustainability. “This is a well-deserved accolade and we wish Deborah well for her tenure.”
  44. 44. Tanette Nell is responsible for running the Eastern Cape tax practice of KPMG where she is involved in providing tax solutions to clients. She joined the firm in 1998 and is a qualified chartered accountant with a Higher Diploma in Taxation. Tanette Nell T HE DAVIS TAX COMMITTEE (DTC) provided its views and recommendations with regards to seven reports released by the Organisation for Economic Co-operation and Development (OECD) in September 2014, in respect of the BEPS initiative, from a South African perspective. This article summarises certain transfer pricing related recommendations made by the DTC in its Interim Report “Addressing Base Erosion and Profit Shifting in South Africa” (DTC BEPS Interim Report) published in December 2014. » ACTION 8: Transfer pricing and intangibles Action 8 of the BEPS Action Plan relates to intangibles and the need to ensure that the prices charged in respect of the use or transfer of intangibles are in line with value creation. However, the DTC makes certain general and intangible specific transfer pricing related recommendations in its DTC BEPS Interim Report on Action 8, which are set out below: The DTC recommends that specific reference to the OECD Transfer Pricing Guidelines should be included in SA’s transfer pricing legislation to ensure that these are legally binding not only on the taxpayer, but also on SARS. Currently, Practice Note 7 makes reference to the OECD Transfer Pricing Guidelines, but this is not legally binding. In addition, it is recommended that a binding General Ruling on the SA transfer pricing legislation should be enacted, which should, while not departing from the OECD Transfer Pricing Guidelines, include a set of principles reflecting the South African reality. Furthermore, in order to appropriately enforce the South African transfer pricing rules, it is recommended that SARS increases, through training and capacity building, the effectiveness of its transfer pricing unit. Furthermore, in order to appropriately enforce the South African transfer pricing rules, it is recommended that SARS increases, through training and capacity building, the effectiveness of its transfer pricing unit. » ACTION 13: Transfer pricing documentation BEPS Action 13 addresses the need to update the guidance on transfer pricing documentation, and the 2014 deliverable for the OECD/ G20 BEPS Project therefore provides guidance on transfer pricing documentation which includes country-by-country reporting. In SA, the onus to transact at arm’s length, and, ultimately, to make a transfer pricing adjustment, if required, is with the taxpayer. Thus, while there is no legal requirement for a taxpayer to have transfer pricing documentation in place, it would be in the best interest of a taxpayer to prepare and maintain transfer pricing documentation. The DTC seems to indicate that transfer pricing documentation should be made compulsory, following the OECD recommended three-tiered approach (Master File, Country File and Country-by-Country reporting), to encourage a consistent approach, and to help limit the cost of preparing, often expensive, transfer pricing documentation. Further, given that Practice Note 7 is effectively outdated in that it refers to legislation that has, subsequent to Practice Note 7’s introduction been amended, the DTC recommends that the SARS guidance be updated to be in line with the current OECD Transfer Pricing Guidelines. The OECD suggests that documentation be reviewed and, if necessary updated annually, and that, in addition to that, database searches be updated every three years. The DTC therefore recommends that SARS considers adopting this guidance in the SA transfer pricing guidance, to clarify the approach followed by SARS. Associate Director: KPMG tax services BUSINESS ADVICE A LOOK AT BASE EROSION & PROFIT SHIFTING (BEPS)
  45. 45. i n f o c o m QUARTER THREE 201546
  46. 46. www.nmbbusinesschamber.co.za 47 Dubennette Moolman Dubennette Moolman holds a BProc from the University of Port Elizabeth and is a qualified attorney, notary and conveyancer specializing in property related matters with almost 20 years of experience. S ECTION 34 of the Insolvency Act 26 of 1936 (Section 34) essentially affords protection to creditors against near-insolvent debtors who in desperation arrange quick sales of their business or assets at a discount in an attempt to collect “some” money for themselves before being declared insolvent. Section 34 therefore requires that the debtor gives advance notice of the impeding sale of business or assets by way of an advertisement in the Government Gazette and in local newspapers, so that the creditors who would be prejudiced by the quick sale have the opportunity to institute proceedings to prevent the sale from proceeding. It is clear that Section 34 only applies to a trader as defined in the Act and to a sale otherwise than in the ordinary course of business. To better explain, I will refer to the case of McCarthy v Core 2007. A transport company was in financial difficulty and sold trucks in its fleet to a third party without advertising the impeding sale. The transport company was then subsequently liquidated and the liquidator invoked Section 34 in an attempt to declare the sale void. If the sale was declared void the third party would have to return the trucks. The Cape High Court found that the transport company was a trader and therefore Section 34 applied and the fact that there was no publication rendered the sale void. The case was taken BUSINESS ADVICE ARE YOU SELLING YOUR BUSINESS OR ASSETS? on appeal and the appeal court, when rendering its decision, provided an authoritative guideline as to when a creditor/ liquidator may use the remedy afforded by Section 34, namely: • The debtor falls within the definition of a “ trader” in that its core business must be one of buying and selling; • The sale of the asset or business falls outside of the ordinary course and scope of the debtor’s business; and • The sale is not advertised in a manner prescribed in Section 34. If the notices are not published or published outside of the strict time periods as set out in Section 34, then the transfer that took place will be void against the creditors and the liquidator if the business is liquidated within a period of six months after the transfer of the business or assets. In practice the parties can elect not to advertise, however, if the sale is not advertised, then the parties need to record in the sale agreement that the seller indemnifies the purchaser against any and all loss or damage it may suffer as a consequence of the decision not to advertise. Although the choice can be recorded, it has been my experience that the financial institutions who grant loans for the purchase of immovable property forming part of the business or assets being purchased are insisting on the publication in terms of Section 34. My advice is: advertise in terms of Section 34. It’s better to be safe than sorry. Director & Head of the Conveyancing Division: Joubert Galpin Searle
  47. 47. i n f o c o m QUARTER THREE 201548 Reason says: there are three ways to go. Instinct says: only one leads to growth. Business decisions are rarely black and white. Dynamic organisations know they need to apply both reason and instinct to decision making. We are Grant Thornton and it’s what we do for our clients every day. Contact us to help unlock your potential for growth. www.gt.co.za © 2014 Grant Thornton South Africa. All rights reserved. Grant Thornton South Africa is a member firm of Grant Thornton International Ltd (‘Grant Thornton International’).
  48. 48. www.nmbbusinesschamber.co.za 49 BUSINESS ADVICE A CHANGING TAX LANDSCAPE Tax Partner: Grant Thornton Cape David Honeyball David Honeyball was previously a founding partner of BDO in Port Elizabeth, which merged into Grant Thornton, and prior to that a tax partner at KPMG. He has had extensive experience in advising large family- owned businesses, national and multinational companies and their shareholders in the areas of corporate tax, international tax, individual tax, estate planning, capital gains tax and indirect taxes. R ECENTLY we have seen some interesting developments when it comes to the taxation of trusts. SARS and government have mooted for years that they would look at the use of trusts in tax planning as there is a general perception from SARS that trusts are used as a tool to avoid taxation and not as estate duty tools. The Davis Tax Commission has finally released its report on Estate Duty. The report is likely to make many taxpayers unhappy as far as some of the suggested provisions are concerned. Part of the solution which the Davis Tax Commission recommends is a more aggressive manner to tax trusts. The estate duty amendments include: • Withdrawing the principle of inter-spouse estate duty and rollovers; • Removing the inter-spousal donations tax exemption, which permits tax free donations of substantial cash amounts in anticipation of death; • Amending the donations tax exemption of bona fide contributions made by a donor for the maintenance of any person by specifying the various categories that of expenditure that can be donated; • Increasing the primary estate duty rebate from the current level of R3.5-million to R6-million. They plan to leave the estate duty and donations tax rates at their current level of 20%. As far as trusts are concerned, the plan is also to maintain the tax rates at 41%. The amendments will include: • Repealing the deeming provisions of Section 7 and 25B in respect of South African resident and non-resident trust arrangements; • Taxing trusts as separate taxpayers; • Not attempting to implement transfer pricing adjustments in instances where financial assistance or interest free loans are advanced to trusts. Essentially taxpayers who wish to continue using trusts can continue to do so. Upon the sale of assets the trust will be taxed on the capital gain and the tax planner will not have the benefit of distributing the capital gain to beneficiaries and having the lower effective capital gains tax as a result of the individual’s lower tax rate. My advice is not to panic at this stage. We have no idea which provisions will be implemented and it is expected that taxpayers will be given advance warning of any legislative changes. I believe that SARS is going to be looking at various additional ways in order to generate more revenue for the fiscus. These methods are becoming far more aggressive and taxpayers are urged to ensure that their tax affairs are in order to avoid any potential penalties and interest being imposed. What seems to be clear is that SARS is going to explore all avenues available to them to maximize tax collections and increase revenues over the next few years by way of enforcing compliance and the introduction of new legislation.
  49. 49. i n f o c o m QUARTER THREE 201550 Income tax – an international perspective The increased volumes and complexity of international trade has resulted in Governments world-wide having to increase the capability of their tax systems to deal with the transactions of global citizens. There is also an underlying tug of war between Governments in respect of where income generated by global citizens should be taxed. In this regard South Africa (“SA”) has done its fair share to keep up with the pace. International tax sensitivities also extend beyond the normal transfer pricing (“TP”) considerations for cross border related party transactions. There are considerations for both outbound and inbound cross border transactions.